Prada: leathergoods sales up 35% in first half
Italian luxury goods maker Prada has posted a 74% rise in first-half net profit, driven by strong demand in Asia — in particular China — and has said it is confident of good full-year results.
The fashion house said net profit for the six months to the end of July rose to EUR179.5 million from EUR103 million a year earlier, while revenue rose 21% to EUR1.13 billion from EUR936.5 million.
Deputy chairman Carlo Mazzi said he is “quite confident Prada will deliver good results in the future,” and dismissed any concerns that the company may be affected by the economic crisis in Europe and the US.
Mr. Mazzi said the company had seen no signs of decreasing orders or negative signs from consumers, according to data at the end of June, and noted that CEO Patrizio Bertelli was positive about the future growth of the group.
Prada’s net debt fell to EUR135.2 million from more than EUR408 million at the end of January as a result of a capital increase of more than EUR200 million, in addition to strong free cash-flow generation. Mr. Mazzi said the company plans to continue reducing its debt.
Sales in Asia rose more than 35% to €368 million. The company said that leathergoods performed particularly well, with sales up 35.3%. Leathergoods now represent more than 55% of total sales.
Mr. Mazzi said Prada will continue to manufacture its products around the world so it can benefit from lower costs and high quality. He cited India as an example of “a country where handmade totes can be produced maintaining the same quality level as the ones produced in Italy,” but at a cheaper cost.
